Analyzing the Korea's growth experience: The application of R&D and human capital based growth models with demography

This study analyzes the growth experience of Korea from a neo-classical growth perspective. Korean annual data for the period 1971-2002 are used to examine the quantitative importance of many key determinants of long-run growth. The investment rate, R&D, education, years of schooling, and financial liberalization policy, the size of government, and the age structure all these human education and capital features exert significant influence on growth. Our findings are also consistent with the view that Korea's high growth is attained by its high degree of adaptability to rapidly changing technology and its ability to exploit new opportunities. The rate of speed of per capita output towards its steady-state output is found to be high.